Citimortgage Paying $158.3 Million in HUD Settlement

WASHINGTON (U.S. Department of Housing and Urban Development) – Citimortgage Inc., a subsidiary of Citibank N.A., has agreed to pay $158.3 million in damages to the U.S. Department of Housing and Urban Development (HUD) under the False Claims Act after charges of mortgage misconduct. The government’s complaint of over six years of wrongdoing in connection with Citimortgage’s participation in the Federal Housing Administration (FHA) Direct Endorsement Lender Program ended in a settlement approved by U.S. District Judge Victor Marrero. Citimortgage admitted responsibility for failing to comply with HUD-FHA loan requirements and to falsifying FHA mortgage insurance eligibility documents. The case against Citimortgage is just one in a series filed against lenders who ignored HUD requirements for approving government-backed loans.